Woodside Energy Commences Operations at Shenzi North oil field before the scheduled date

Woodside Energy has started production at its Shenzi North oil field located in the US Gulf of Mexico ahead of its initially projected 2024 timeline. Shenzi North, connected via a two-well subsea tieback and leveraging existing Woodside-operated Shenzi infrastructure, was procured during the 2022 merger of Woodside and BHP's petroleum division. This new production will elevate Shenzi's output by 14,000 barrels per day (b/d).

Previously, the Shenzi platform produced 100,000 b/d of oil and 515 million m³ annually of gas, as reported by Woodside. With Shenzi North now operational, oil production is expected to reach 114,000 b/d. However, this does not change Woodside's existing 2023 production prediction of 180 million to 190 million barrels of oil equivalent (boe) per year.

Woodside's CEO, Meg O'Neill, commented on 13 September, emphasizing the significance of Shenzi North. She remarked on the company's strategy of maximizing existing infrastructure for enhanced production and returns from their Gulf of Mexico operations. O'Neill lauded the team's efforts, highlighting the achievement of transitioning from the final investment decision to the initial oil production in just 26 months.

Woodside possesses a 72% stake in the Shenzi conventional oil and gas field, while Spanish oil company Repsol holds the remaining 28%. Situated 195km off Louisiana's coast, Shenzi's discovery dates back to 2002, with its inaugural oil and natural gas production commencing in 2009.

Furthermore, Woodside disclosed on 22 August that its share from the combined production of its Gulf of Mexico assets, including Shenzi, Atlantis FPU, Mad Dog a-Spar, and Argos FPU, amounted to 82,000 boe/d during the first half of 2023.

As per Procurement Resource, Woodside Energy has commenced production at Shenzi North, ahead of schedule, demonstrating its capability to swiftly capitalize on mergers and leverage existing infrastructure for growth. The surge in output from Shenzi North is indicative of Woodside's commitment to enhancing its global footprint. With a significant stake in the Shenzi field and collaborations with major players like Repsol, Woodside is poised to further solidify its position in the Gulf of Mexico. The company's progress in the first half of 2023 signals a promising trajectory for its future ventures and contributions to the global energy market.